On Thursday, Baird, a financial services firm, increased its price target on Verisk Analytics (NASDAQ:VRSK) shares, a data analytics and risk assessment firm, to $285 from the previous target of $268. The firm has maintained an Outperform rating on the stock.
The adjustment follows Verisk's recent performance, which showed a slight deceleration in organic constant currency revenue growth. The growth rate slowed by approximately 90 basis points to 6.0%, falling roughly 80 basis points short of consensus expectations.
This shortfall came amid heightened investor anticipation for the second quarter and optimism about how Verisk's growth might capitalize on property and casualty (P&C) insurance market trends.
Despite the deceleration, Baird noted that the weakness was primarily in the Transactional revenue segment. In contrast, subscription growth not only accelerated but also appeared to be broad-based and largely driven by robust underlying growth. The firm emphasized that this growth was not significantly influenced by conversions from transaction to subscription models.
In light of these observations, Baird has slightly adjusted its estimates for Verisk Analytics. The firm acknowledges the recent performance as a minor setback rather than a significant alteration in the company's growth trajectory. The updated price target reflects Baird's ongoing confidence in Verisk's market position and its potential for continued growth within the industry.
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